Focus Universal Inc. (NASDAQ:FCUV) announced today that it has closed the acquisition of a five-level, Class A office and commercial building located at 901 Corporate Center Drive in Monterey Park, California. The purchase, valued at $17.7 million, also includes a four-level parking structure and multiple land parcels totaling 464,955 square feet, or 10.73 acres. The property is 99.2% occupied by approximately 16 tenants, with most lease terms ranging from five to eight years. The company plans to occupy roughly 2,000 square feet of the space and will not alter existing lease agreements.
Chief Financial Officer Irving Kau highlighted the financial merits of the acquisition, stating that the building's assessed value by the Los Angeles County Assessor in 2026 is $28.3 million, over $10 million above the purchase price. The property generated monthly rental income of over $257,000 in 2025, equating to approximately $3.1 million in annual rents. After accounting for monthly principal and interest payments of under $68,700 on the term loan from East West Bank, the company expects a positive cash flow. Kau noted that the building's capitalization rate exceeds 10%, which he considers rare for high-value Class A commercial properties in Los Angeles County.
Additionally, one of the parcels is zoned residential and remains undeveloped, with an assessed value over $600,000. This parcel presents potential development or divestiture opportunities that could further enhance company value. The company has retained Lee and Associates to manage the property, with previous management Jamison Services staying for 30 days to facilitate the transition.
The acquisition is expected to serve as the company's corporate headquarters and reduce corporate rent and expense burdens while bolstering overall equity and asset value. Focus Universal Inc. provides patented hardware and software design technologies for the Internet of Things (IoT), 5G, and AI-driven SEC financial reporting automation software. The company's forward-looking statements caution that actual results may differ from expectations due to various risks and uncertainties.
